Answer:
The payback period is more than 5 years
Explanation:
Net present value is the Net value of all cash inflows and outflows in present value term. All the cash flows are discounted using a required rate of return.
Year Cash flow PV factor Present Value
0 ($490,000) 1 ($490,000)
1 $40,000 0.909 $36,360
2 $10,000 0.826 $8,260
3 $120,000 0.751 $90,120
4 $90,000 0.683 $61,470
5 $180,000 0.621 <u> $111,780 </u>
Net Present Value ($182,010)
NPV of this Investment is negative so, it is not acceptable.
Payback period
Total Net cash inflow of the investment is $440,000 and Initial investment is $490,000. This investment will take more than 5 years to payback the initial investment.
Answer:
likelihood that disputes will arise under their contract is reduced.
Explanation:
One of the advantages of entering into a partnering agreement is that the likelihood that disputes will arise under their contract is reduced. This is mainly due to the fact that the agreed upon contract contains all the rules and regulations that both entities have agreed to follow. Therefore if there is any difference in decision the contract can be brought up and must be followed.
Answer:
$162,000
Explanation:
Income Statement - New Offer
Sales (27,000 x $17) $459,000
Less Variable Costs of the offer :
Variable manufacturing costs (27,000 x $11) ($297,000)
Net Income (Loss) $162,000
therefore,
the amount of income from the acceptance of the offer is $162,000
Answer:
IT Department
Explanation:
Most companies have the need for an <em>IT</em> department that can quickly repair and troubleshoot systems, as well as provide technical support to employees.
An T Department takes care of all the technical streams running throughout the office. f any error or shortcoming occurs, the IT department makes sure they get rid of the bug that is causing the glitch.
They help the employees and provide them with technical support, since now a days, companies are 50% based on technology and any trouble can cause harm to the organization.
